Budget 2015 sets course for Canada’s manufacturing future: CME

Canada’s manufacturing sector is the cornerstone of the Canadian economy, according to the federal government’s Economic Action Plan 2015 – and this year’s budget backs up the importance of both manufacturing and exporting with a number of important tax and investment measures that will have a very positive impact for CME members.

Most importantly, the budget provides an Accelerated Capital Cost Allowance over the next ten years for investments in manufacturing and processing technologies.“This measure will encourage manufacturers to grow in Canada by investing in the advanced production technologies required to boost productivity, compete in global markets and employ Canadians in well-paying jobs,” said Jayson Myers, President & CEO of Canadian Manufacturers & Exporters.

“The ACCA’s ten-year timeframe will encourage new investments by providing greater certainty for companies that require several years to plan and put in place new equipment.And, because the tax allowance is extremely competitive in international terms, it will also help Canada compete for new business investments that will benefit goods and services suppliers alike.”

Other budget measures that will assist Canadian manufacturers and exporters include a new automotive supplier innovati on fund, establishment of a new fund to finance Canadian companies operating in developing countries, increased investments in advanced manufacturing research and skills training programs, new investments in public transit infrastructure and commitments to reduce the small business tax rate and Employment Insurance premiums.

“To counter the volatility in the resource sector, the government has made clear that the future health of Canada’s economy depends on a strong manufacturing and exporting sector,” said Myers.

“Even with a low dollar, we can’t afford to take our eyes off the importance of investment in new products, new technologies and new skills for manufacturing success and job growth across the country. The budget will help companies determined to make those critical investments.”